Choosing your form of taxation

The choice of the form of taxation is a very important aspect as it affects the amount of the tax which will be needed to be paid in the future.

The choice depends on both the nature of our business as well as revenues.

  1. General terms, taxation either 18% or 32%, possible when the company conducts a revenue and expense ledger (KPiR).

Most affordable if:

- your income does not exceed 85.000 PLN per year.

- you run a business that generates a lot of costs.

- you want to take advantage of privileges such as tax-free allowance or the possibility of settling your taxes together with your spouse.

  1. Flat tax rate, which is always 19%. This method is also possible for business owners who record their documents in revenue and expense ledger.

This form of taxation does not allow any tax reliefs nor tax settlement being done together with the spouse.

Most affordable if:

- your annual earnings exceed 85.000 PLN per year by a large amount.

  1. A lump sum on recorded income - taxes calculated as a percentage of your revenue.

We can not reduce the tax base by costs required to run the company. The only exception are revenues achieved by members of the so-called free professions. No requirement to conduct a revenue and expense ledger.

The taxation depends on the type of services conducted by the company and ranges from 2% to 20%.

The 20% tax rate applies to income earned in the field of professional services done by the members of the free professions exclusively to individuals.

The 17% tax rate applies to revenues registered by entrepreneurs from the provision of, among others, services such as:

  1. counseling for children in terms of education and social assistance,

  2. intermediary in wholesale,

  3. related to matters of accommodation or real estate management on behalf of a third party,

  4. related to consultancy in the field of computer hardware and data processing,

  5. rental and leasing of cars,

  6. work done by temporary employment agencies, related to the provision of personel to a third party,

  7. work done by Travel agencies,

  8. photographic and telecoms services.

The 10% tax rate is used for matters of disposal of property rights or real estate.

The 8.5% tax rate covers, among others, income from the rental of.

The 5.5% tax rate is applied to income received from manufacturing operations, construction works or through freight by a car fleet with a capacity of more than 2 tons.

The 3% tax rat eis applied to revenues such as:The 2% tax rate covers the sale of one’s own products.

  1. Tax card - this method of taxation is based on a fixed amount of tax paid monthly, as determined by the tax office. The factors determining the tax value are the type and scope of the business, the number of employees and the number of inhabitants of the locality in which the business is conducted,

One can change the form of taxation up until January 20th of each year.

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